The document discusses production and operation management. It covers key topics such as the purpose of business, organizational models, important functions like finance, marketing and operations. It also discusses career opportunities in operations management and important operations decisions. The document defines production management, operations management and the transformation process. It compares manufacturing versus service operations and production versus operations management. Finally, it discusses factors affecting operations management today.
The document discusses key concepts in operations management (OM) such as managing production of goods and services, the difference between OM and production management, the need for OM, major functions of OM, and examples of OM in companies like PepsiCo, Toyota, and others. It explains that OM aims to conduct all organizational operations efficiently and effectively through functions like procurement, quality management, inventory control, and more. Toyota is highlighted for its use of just-in-time production and flexible operations techniques to minimize costs and adapt to changing demand through efficient OM.
Lean production is an approach that focuses on eliminating waste to ensure quality. It involves doing simple things well, continuous improvement, and involving employees. The goal is to cut costs by reducing various types of waste like overproduction, waiting times, unnecessary transport and motion. Key aspects of lean production include just-in-time delivery from suppliers, cell production, simultaneous engineering, time-based management and continuous improvement through kaizen. Effective lean production requires good supplier relations, skilled employees and a culture of quality and change.
In this presentation we will discuss about the concept of just in time (JIT) production philosophy, types and concepts of JIT, objectives of JIT manufacturing, comparison between ideal production system and JIT production, characteristics of JIT system, JIT manufacturing vs. JIT purchasing. We will also discuss about major tools and techniques of JIT manufacturing, JIT implementation approach, problems regarding implementation of JIT, planning of a successful JIT system, obstacles faced for JIT conversion, operational benefits of JIT systems.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document discusses different types of manufacturing systems. It defines a manufacturing system as a collection of integrated equipment and human resources that perform processing and/or assembly operations to transform raw materials into a finished product. Manufacturing systems involve input, transformation, and output processes. Key factors in selecting a manufacturing system include volume, capacity, flexibility, lead time, efficiency, and environmental impact. Examples of manufacturing systems provided include single station cells, machine clusters, manual assembly lines, automated transfer lines, and flexible manufacturing systems. Components of manufacturing systems are production machines, material handling systems, computer systems, and human resources. The document further classifies manufacturing systems as intermittent or continuous production systems based on whether production flows are started and stopped irregularly or operate
Material requirement planning case studyVaibhav Kadu
This case study analyzes how material requirement planning (MRP) can help a micro, small, and medium enterprise (MSME) apparel company called Grooveline more efficiently plan material purchases and production. Grooveline previously struggled with determining how much material to buy and fulfilling orders on time. The study explains key MRP concepts like master production schedule, bill of materials, lead times, and time-phased product structure. It finds that implementing MRP allows Grooveline to save 8.14-11% on material costs by avoiding excess purchases and delays. The recommendations are for Grooveline to fully apply MRP to all products and for further research to consider additional costs.
job shop production system in productions and operations systemar9530
A job shop is a manufacturing facility that produces small batches of custom products using general purpose machines. Jobs move flexibly between work centers without a standard sequence. This type of production is suitable when there is high variety in low-volume products. Scheduling is challenging due to the variability in product flows. Job shops have high costs but also flexibility to produce different products and expand capacity easily.
This document provides an overview of just-in-time (JIT) manufacturing. It describes JIT as a philosophy involving minimal inventories and goods that move through the system as needed. The document outlines the history and evolution of JIT in Japan after World War II. It also discusses the seven types of waste in manufacturing that JIT aims to eliminate and lists some key principles of JIT including total quality management, pull-based production, and inventory management with the goal of zero inventory. The document concludes by discussing advantages like reduced waste and disadvantages like risk from supply disruptions of implementing JIT manufacturing.
This document discusses key concepts related to Just-in-Time (JIT) and Lean operations including defining JIT, the Toyota Production System (TPS), Lean operations, the seven wastes, the 5Ss, JIT partnerships, variability reduction, and throughput improvement. It also covers JIT inventory techniques like pull systems, reduced lot sizes, and kanban. The overall goal of JIT and Lean is to eliminate waste and provide value to the customer.
The document discusses key concepts in operations management (OM) such as managing production of goods and services, the difference between OM and production management, the need for OM, major functions of OM, and examples of OM in companies like PepsiCo, Toyota, and others. It explains that OM aims to conduct all organizational operations efficiently and effectively through functions like procurement, quality management, inventory control, and more. Toyota is highlighted for its use of just-in-time production and flexible operations techniques to minimize costs and adapt to changing demand through efficient OM.
Lean production is an approach that focuses on eliminating waste to ensure quality. It involves doing simple things well, continuous improvement, and involving employees. The goal is to cut costs by reducing various types of waste like overproduction, waiting times, unnecessary transport and motion. Key aspects of lean production include just-in-time delivery from suppliers, cell production, simultaneous engineering, time-based management and continuous improvement through kaizen. Effective lean production requires good supplier relations, skilled employees and a culture of quality and change.
In this presentation we will discuss about the concept of just in time (JIT) production philosophy, types and concepts of JIT, objectives of JIT manufacturing, comparison between ideal production system and JIT production, characteristics of JIT system, JIT manufacturing vs. JIT purchasing. We will also discuss about major tools and techniques of JIT manufacturing, JIT implementation approach, problems regarding implementation of JIT, planning of a successful JIT system, obstacles faced for JIT conversion, operational benefits of JIT systems.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document discusses different types of manufacturing systems. It defines a manufacturing system as a collection of integrated equipment and human resources that perform processing and/or assembly operations to transform raw materials into a finished product. Manufacturing systems involve input, transformation, and output processes. Key factors in selecting a manufacturing system include volume, capacity, flexibility, lead time, efficiency, and environmental impact. Examples of manufacturing systems provided include single station cells, machine clusters, manual assembly lines, automated transfer lines, and flexible manufacturing systems. Components of manufacturing systems are production machines, material handling systems, computer systems, and human resources. The document further classifies manufacturing systems as intermittent or continuous production systems based on whether production flows are started and stopped irregularly or operate
Material requirement planning case studyVaibhav Kadu
This case study analyzes how material requirement planning (MRP) can help a micro, small, and medium enterprise (MSME) apparel company called Grooveline more efficiently plan material purchases and production. Grooveline previously struggled with determining how much material to buy and fulfilling orders on time. The study explains key MRP concepts like master production schedule, bill of materials, lead times, and time-phased product structure. It finds that implementing MRP allows Grooveline to save 8.14-11% on material costs by avoiding excess purchases and delays. The recommendations are for Grooveline to fully apply MRP to all products and for further research to consider additional costs.
job shop production system in productions and operations systemar9530
A job shop is a manufacturing facility that produces small batches of custom products using general purpose machines. Jobs move flexibly between work centers without a standard sequence. This type of production is suitable when there is high variety in low-volume products. Scheduling is challenging due to the variability in product flows. Job shops have high costs but also flexibility to produce different products and expand capacity easily.
This document provides an overview of just-in-time (JIT) manufacturing. It describes JIT as a philosophy involving minimal inventories and goods that move through the system as needed. The document outlines the history and evolution of JIT in Japan after World War II. It also discusses the seven types of waste in manufacturing that JIT aims to eliminate and lists some key principles of JIT including total quality management, pull-based production, and inventory management with the goal of zero inventory. The document concludes by discussing advantages like reduced waste and disadvantages like risk from supply disruptions of implementing JIT manufacturing.
This document discusses key concepts related to Just-in-Time (JIT) and Lean operations including defining JIT, the Toyota Production System (TPS), Lean operations, the seven wastes, the 5Ss, JIT partnerships, variability reduction, and throughput improvement. It also covers JIT inventory techniques like pull systems, reduced lot sizes, and kanban. The overall goal of JIT and Lean is to eliminate waste and provide value to the customer.
The document provides guidance on keeping moving forward, even when facing challenges. It advises that if one cannot fly (move quickly), they should run, if they cannot run they should walk, and if unable to walk then crawl. But the key message is to keep moving in whatever way possible. The quote is attributed to civil rights leader Martin Luther King Jr.
This document provides an overview of operations strategy from a textbook. It discusses the role of operations strategy in supporting business strategy through specifying resource allocation plans. Operations strategy focuses on developing competitive priorities like cost, quality, time, and flexibility. It also discusses how operations requirements like structure and infrastructure are determined by the chosen competitive priorities. The document provides examples of measuring productivity and interpreting those measures.
This document defines key terms related to assembly line production including assembly, line, production, and defines assembly line production as a manufacturing process where semi-finished products move between workstations to have parts added in sequence until completion. It describes the principle of assigning each worker a specific repeated task to mass produce goods quickly and efficiently. It also lists advantages like speed and disadvantages like inflexibility of assembly line production.
The document discusses various aspects of production systems including their characteristics, inputs, outputs, controls, product design process, and process planning. It describes production systems as manufacturing subsystems that design, produce, distribute, and service products. They have specialized functions at different levels and need renovation over time to adapt to changes. The key aspects covered are input-output relationships, types of control like feedback and forward control, objectives and importance of product design, steps in the design process, factors affecting process design decisions, types of process designs, and major process decisions around process choice, vertical integration, resource flexibility, customer involvement, and capital intensity.
This document discusses lean manufacturing systems and factors influencing facility layout designs. It describes the main types of layouts including process, product, and fixed-position layouts as well as hybrid layouts like cellular manufacturing, flexible manufacturing systems, and mixed-model assembly lines. The goals of layout design are to ensure smooth material and information flow while arranging machines, departments, workstations, and storage areas. Process layouts group similar activities together and are suitable for low-volume production, while product layouts arrange activities in operational sequence for mass production. Hybrid layouts aim to balance the flexibility of process layouts with the efficiency of product layouts.
This document provides an overview of Just-In-Time (JIT) manufacturing. It defines JIT as a philosophy involving integrated procedures to achieve high production volume using minimal inventories. JIT represents a pull-type system where goods and services are performed as needed. The goals of JIT are to achieve a smooth, rapid flow and eliminate waste like excess inventory. Key principles include total quality management, production management focusing on small lot sizes and flexibility, supplier management through long-term relationships, and inventory management with minimal safety stock. Benefits include increased equipment utilization and reduced costs from less scrap, space, and setup times.
This document discusses aggregate planning, which involves determining production levels for the intermediate future of 6-18 months. Aggregate planning begins with forecasting demand and adjusting production rates, staffing levels, and inventory levels. It requires input from various functional areas regarding capacity, customer needs, demand forecasts, suppliers, and resources. The objectives of aggregate planning are to meet demand, provide stable work and customer service levels, and develop an economic strategy. It aims to minimize costs and inventory while maximizing profit, customer service, and plant utilization.
This document provides an overview of production management. It discusses the historical milestones in operations management such as the Industrial Revolution, scientific management, and the computer revolution. It also covers the different ways of studying operations management, including viewing production as a system and the three types of decisions: strategic, operating, and control. The goal of operations management is to efficiently manage an organization's resources and production process.
This document provides an overview of production and operations management. It discusses key topics such as production planning and control, plant layout, material handling, quality management, and productivity improvement techniques. The roles and responsibilities of production managers are also outlined. Various production systems, inventory control methods, and maintenance strategies are defined.
Work study ......operational management presentationvish0110
This presentation discusses work study and its two main methods: method study and work measurement. Work study aims to improve productivity and efficiency through analyzing work methods. Method study examines work processes to simplify and standardize methods, reducing waste. The key steps of method study are select, record, examine, develop, install, and maintain a work process. Work measurement establishes standard time durations for jobs based on a qualified worker's performance to set production targets and incentives. The goals are to eliminate ineffective time and set achievable performance standards.
Production management involves planning, organizing, and controlling manufacturing activities to produce goods and services. It transforms inputs like raw materials, tools, capital, and human resources into outputs through a production process. The scope of production management includes functions like design, production planning and control, quality control, maintenance, and inventory control. There are different types of production processes and systems based on factors like the industry, scale of production, and nature of transforming inputs into outputs.
Lean manufacturing aims to eliminate waste in production processes through continuous improvement efforts. It focuses on minimizing inventory levels and non-value adding activities to reduce costs and lead times. Toyota pioneered this approach after World War 2 to rebuild efficiently without large economies of scale. Implementing lean principles like just-in-time production and cellular manufacturing allowed Toyota to dramatically reduce production cycle times and outcompete major automakers. A chemical company also successfully applied lean tools to halve inventory levels and cut order fulfillment times from 20 to 5 minutes. Lean techniques organize work areas, maintain equipment, and pull work through production cells to optimize flow.
This document discusses ways to reduce setup and changeover time through SMED (Single Minute Exchange of Die) techniques without significant capital expenditures. It outlines the goals of setup reduction as reducing lead times and costs while improving flexibility, productivity, and customer service. Key techniques mentioned include separating internal and external setup steps, standardizing processes, improving tool and equipment design, visual controls, and cross-training operators. Critical success factors include eliminating waste, empowering operators, applying 5S principles, encouraging teamwork, producing in small lot sizes, and focusing on continuous improvement.
This document provides an overview of a presentation on production management by Gururaj Phatak. It discusses the historical evolution of production and operations management from the Industrial Revolution to modern concepts like just-in-time production and total quality management. It also defines key production management terms like inputs, value-added activities, and outputs in the production process. Finally, it distinguishes between manufacturing and service operations and describes different types of operations.
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Collaborative manufacturing allows groups across a company and its supply chain partners to work together through shared plans, actions, and operations. It aims to streamline processes and provide comprehensive information to support decision-making. An effective collaborative strategy requires integrating information systems and aggregating data across partners to intelligently share it. The goals are to identify critical business processes, make them efficient and flexible to meet market demands, and allow data to flow between systems for agility. Benefits include improved metrics, decision-making, speed of response, and financial success through people and systems supporting processes.
The document discusses Vendor Managed Inventory (VMI), where the vendor is responsible for maintaining the customer's inventory levels based on agreed terms. It provides benefits like reduced inventory levels and costs, improved supplier service, and reduced lead times. It also discusses pitfalls like system costs and how to manage them. As an example, it outlines how one company implemented VMI for forklift spare parts, reducing inventory costs, liability, and downtime through discounted pricing, reduced lead times, and zero inventory carrying costs.
The document provides information about master scheduling, including:
1) Master scheduling is the process of producing a supply plan to schedule specific items or services within a given time period to meet demand.
2) It balances demand and supply at a detailed level through a master production schedule, which anticipates the build schedule for products and customer orders.
3) The master scheduling process involves calculating projected on-hand inventory, determining production quantities and timing to meet demand while satisfying resource constraints, and revising the schedule until a feasible plan is developed.
This document provides an overview of just-in-time (JIT) manufacturing. It discusses the history and objectives of JIT, the eight types of waste in manufacturing, and the three parts of JIT - purchasing, manufacturing, and quality management. Key aspects of JIT covered include production management, supplier management, inventory management, and human resource management. The document also compares traditional manufacturing systems to JIT systems and discusses how management accounting must adapt to support JIT goals.
The document discusses the steps involved in selecting a location for a new industrial plant. The key steps are: 1) Deciding whether to locate domestically or internationally; 2) Selecting a suitable region based on factors like raw materials, markets, infrastructure, climate, and government policies; 3) Choosing a specific community or locality based on availability of labor, financing options, and amenities for workers; 4) Picking the exact site based on soil quality, size, topography, and waste disposal needs. Location is a critical economic decision that impacts long-term costs and business operations.
The document provides guidance on keeping moving forward, even when facing challenges. It advises that if one cannot fly (move quickly), they should run, if they cannot run they should walk, and if unable to walk then crawl. But the key message is to keep moving in whatever way possible. The quote is attributed to civil rights leader Martin Luther King Jr.
This document provides an overview of operations strategy from a textbook. It discusses the role of operations strategy in supporting business strategy through specifying resource allocation plans. Operations strategy focuses on developing competitive priorities like cost, quality, time, and flexibility. It also discusses how operations requirements like structure and infrastructure are determined by the chosen competitive priorities. The document provides examples of measuring productivity and interpreting those measures.
This document defines key terms related to assembly line production including assembly, line, production, and defines assembly line production as a manufacturing process where semi-finished products move between workstations to have parts added in sequence until completion. It describes the principle of assigning each worker a specific repeated task to mass produce goods quickly and efficiently. It also lists advantages like speed and disadvantages like inflexibility of assembly line production.
The document discusses various aspects of production systems including their characteristics, inputs, outputs, controls, product design process, and process planning. It describes production systems as manufacturing subsystems that design, produce, distribute, and service products. They have specialized functions at different levels and need renovation over time to adapt to changes. The key aspects covered are input-output relationships, types of control like feedback and forward control, objectives and importance of product design, steps in the design process, factors affecting process design decisions, types of process designs, and major process decisions around process choice, vertical integration, resource flexibility, customer involvement, and capital intensity.
This document discusses lean manufacturing systems and factors influencing facility layout designs. It describes the main types of layouts including process, product, and fixed-position layouts as well as hybrid layouts like cellular manufacturing, flexible manufacturing systems, and mixed-model assembly lines. The goals of layout design are to ensure smooth material and information flow while arranging machines, departments, workstations, and storage areas. Process layouts group similar activities together and are suitable for low-volume production, while product layouts arrange activities in operational sequence for mass production. Hybrid layouts aim to balance the flexibility of process layouts with the efficiency of product layouts.
This document provides an overview of Just-In-Time (JIT) manufacturing. It defines JIT as a philosophy involving integrated procedures to achieve high production volume using minimal inventories. JIT represents a pull-type system where goods and services are performed as needed. The goals of JIT are to achieve a smooth, rapid flow and eliminate waste like excess inventory. Key principles include total quality management, production management focusing on small lot sizes and flexibility, supplier management through long-term relationships, and inventory management with minimal safety stock. Benefits include increased equipment utilization and reduced costs from less scrap, space, and setup times.
This document discusses aggregate planning, which involves determining production levels for the intermediate future of 6-18 months. Aggregate planning begins with forecasting demand and adjusting production rates, staffing levels, and inventory levels. It requires input from various functional areas regarding capacity, customer needs, demand forecasts, suppliers, and resources. The objectives of aggregate planning are to meet demand, provide stable work and customer service levels, and develop an economic strategy. It aims to minimize costs and inventory while maximizing profit, customer service, and plant utilization.
This document provides an overview of production management. It discusses the historical milestones in operations management such as the Industrial Revolution, scientific management, and the computer revolution. It also covers the different ways of studying operations management, including viewing production as a system and the three types of decisions: strategic, operating, and control. The goal of operations management is to efficiently manage an organization's resources and production process.
This document provides an overview of production and operations management. It discusses key topics such as production planning and control, plant layout, material handling, quality management, and productivity improvement techniques. The roles and responsibilities of production managers are also outlined. Various production systems, inventory control methods, and maintenance strategies are defined.
Work study ......operational management presentationvish0110
This presentation discusses work study and its two main methods: method study and work measurement. Work study aims to improve productivity and efficiency through analyzing work methods. Method study examines work processes to simplify and standardize methods, reducing waste. The key steps of method study are select, record, examine, develop, install, and maintain a work process. Work measurement establishes standard time durations for jobs based on a qualified worker's performance to set production targets and incentives. The goals are to eliminate ineffective time and set achievable performance standards.
Production management involves planning, organizing, and controlling manufacturing activities to produce goods and services. It transforms inputs like raw materials, tools, capital, and human resources into outputs through a production process. The scope of production management includes functions like design, production planning and control, quality control, maintenance, and inventory control. There are different types of production processes and systems based on factors like the industry, scale of production, and nature of transforming inputs into outputs.
Lean manufacturing aims to eliminate waste in production processes through continuous improvement efforts. It focuses on minimizing inventory levels and non-value adding activities to reduce costs and lead times. Toyota pioneered this approach after World War 2 to rebuild efficiently without large economies of scale. Implementing lean principles like just-in-time production and cellular manufacturing allowed Toyota to dramatically reduce production cycle times and outcompete major automakers. A chemical company also successfully applied lean tools to halve inventory levels and cut order fulfillment times from 20 to 5 minutes. Lean techniques organize work areas, maintain equipment, and pull work through production cells to optimize flow.
This document discusses ways to reduce setup and changeover time through SMED (Single Minute Exchange of Die) techniques without significant capital expenditures. It outlines the goals of setup reduction as reducing lead times and costs while improving flexibility, productivity, and customer service. Key techniques mentioned include separating internal and external setup steps, standardizing processes, improving tool and equipment design, visual controls, and cross-training operators. Critical success factors include eliminating waste, empowering operators, applying 5S principles, encouraging teamwork, producing in small lot sizes, and focusing on continuous improvement.
This document provides an overview of a presentation on production management by Gururaj Phatak. It discusses the historical evolution of production and operations management from the Industrial Revolution to modern concepts like just-in-time production and total quality management. It also defines key production management terms like inputs, value-added activities, and outputs in the production process. Finally, it distinguishes between manufacturing and service operations and describes different types of operations.
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Collaborative manufacturing allows groups across a company and its supply chain partners to work together through shared plans, actions, and operations. It aims to streamline processes and provide comprehensive information to support decision-making. An effective collaborative strategy requires integrating information systems and aggregating data across partners to intelligently share it. The goals are to identify critical business processes, make them efficient and flexible to meet market demands, and allow data to flow between systems for agility. Benefits include improved metrics, decision-making, speed of response, and financial success through people and systems supporting processes.
The document discusses Vendor Managed Inventory (VMI), where the vendor is responsible for maintaining the customer's inventory levels based on agreed terms. It provides benefits like reduced inventory levels and costs, improved supplier service, and reduced lead times. It also discusses pitfalls like system costs and how to manage them. As an example, it outlines how one company implemented VMI for forklift spare parts, reducing inventory costs, liability, and downtime through discounted pricing, reduced lead times, and zero inventory carrying costs.
The document provides information about master scheduling, including:
1) Master scheduling is the process of producing a supply plan to schedule specific items or services within a given time period to meet demand.
2) It balances demand and supply at a detailed level through a master production schedule, which anticipates the build schedule for products and customer orders.
3) The master scheduling process involves calculating projected on-hand inventory, determining production quantities and timing to meet demand while satisfying resource constraints, and revising the schedule until a feasible plan is developed.
This document provides an overview of just-in-time (JIT) manufacturing. It discusses the history and objectives of JIT, the eight types of waste in manufacturing, and the three parts of JIT - purchasing, manufacturing, and quality management. Key aspects of JIT covered include production management, supplier management, inventory management, and human resource management. The document also compares traditional manufacturing systems to JIT systems and discusses how management accounting must adapt to support JIT goals.
The document discusses the steps involved in selecting a location for a new industrial plant. The key steps are: 1) Deciding whether to locate domestically or internationally; 2) Selecting a suitable region based on factors like raw materials, markets, infrastructure, climate, and government policies; 3) Choosing a specific community or locality based on availability of labor, financing options, and amenities for workers; 4) Picking the exact site based on soil quality, size, topography, and waste disposal needs. Location is a critical economic decision that impacts long-term costs and business operations.
Alfred Weber developed the theory of location which assumed fixed centers of consumption and labor supply. The theory states that transportation costs and labor costs are the primary factors influencing the location of industries. According to Weber, industries will locate near raw material sources if the material index is greater than 1, and near markets if the material index is less than 1. The optimal location is the point where transportation costs and labor costs are minimized.
This document discusses plant location and layout. It covers the objectives of analyzing plant location and layout such as selecting an optimal location to minimize costs. Key factors for plant location selection include availability of materials, labor, markets, infrastructure and government incentives. Locational analysis involves studying population demographics, trade areas, competition, traffic patterns, and establishment and operational costs to evaluate alternative sites. The significance of plant location is that it greatly influences production and distribution costs, and a poor location choice can cause a business to fail or restrict its growth.
The document discusses different location modeling techniques to determine the optimal location for a new plant given the locations of existing facilities. It presents the simple median model, factor rating method, and break-even analysis. The simple median model is illustrated using a network of 4 existing facilities (F1-F4) where the new plant needs to supply raw materials. It determines the optimal location for the new plant as x=20, y=40 by finding the median load and corresponding x- and y-coordinates. The factor rating method and break-even analysis are also demonstrated through examples to select the best location among alternatives based on important factors and production volume ranges.
Plant location refers to establishing an industry at a particular place. There are two types: localization/centralization concentrates similar industries in one area, while delocalization/decentralization spreads them out. Key factors in choosing a location include availability of resources like materials, labor, transportation; market access; and operating costs. Methods for evaluating potential sites include comparative cost charts, which assess total costs, and dimensional analysis, which assigns weights to qualitative factors.
A man finds a cocoon and watches as a butterfly struggles to emerge. He cuts open the cocoon to help the butterfly, but in doing so damages its wings so it can never fly. The document explains that the struggle to emerge from the cocoon is necessary for the butterfly to develop strong wings. Sometimes struggles help us grow stronger.
This deck was made to share with junior planners and planning trainees at our agency to give them some sort of structure to what appears to be a hard nut to crack: writing The Strategy.
Motivation is like an accelerator in a vehicle. A vehicle keeps moving at the pace decided by its accelerator. The moment accelerator is reduced, vehicle’s speed reduces and it may come to a standstill if there is no further acceleration. Alternatively, if brakes are applied, there will be an abrupt reduction in the speed of the vehicle and it may come to a standstill.
This is true to human beings as well. As long as they are motivated they keep working and producing extraordinary results. The moment there is a drop in their acceleration (motivation), results start diminishing. Of course, applying brakes (dissatisfaction/demotivation) certainly bring them to a halt. The only difference is that unlike a vehicle, human beings have different types of accelerator and brake.
Therefore, the book, Why My Horse Doesn't Drink' will help readers to identify the ways that may accelerate or slow down the speed of their team members. Chapter ‘How to motivate’ talks about the points that accelerate and chapter ‘How not to demotivate’ explains the factors that may work as brakes to performance. Thereby readers will be able to make best use of their vehicle (Team Members).
The document discusses operations strategy and how it aligns with corporate strategy and customer needs. It outlines several operations priorities like cost, quality, and flexibility that companies must consider. It also discusses how world-class manufacturers no longer view these as tradeoffs but as order qualifiers. The document provides frameworks for developing a manufacturing strategy and how manufacturing can progress from being internally neutral to providing external competitive advantage through various stages.
This chapter discusses operations management. It defines operations management as planning, organizing, leading, and controlling resources to create value through an organization's goods and services. The chapter describes the transformation system that converts inputs through a process into outputs. It explains how operations management objectives like quality, speed, dependability, flexibility, and cost are important. It also outlines the direct, indirect, and broader responsibilities of operations managers.
Production/operations management (POM) involves planning, organizing, and controlling the production process. As part of management, the key functions of POM are to optimize resource utilization, make decisions about production, and ensure goals are aligned with the overall organization's strategy. The POM manager seeks to effectively plan, organize, control, and model human behavior during the conversion of raw materials into finished goods.
The document provides an overview of operations management concepts including:
- The 10 decision areas of operations management including product/service design, quality, and capacity planning.
- Different types of production systems such as job shop, batch, and mass production and factors to consider when selecting a process.
- Key facility location factors and the general procedure for evaluating location alternatives.
Operations management refers to administering business practices to maximize efficiency and profitability. It involves converting materials and labor into goods and services. The operations function creates and delivers products and services while evaluating quality, quantity, costs and fulfilling customer needs. Mass production and flexible production are two key production methods used. Production managers oversee resources to transform inputs into finished outputs through planning, implementing, and controlling production processes.
This document provides an overview of operations management. It defines operations management and discusses key concepts like the production system, transformation process, and differences between products and services. The document also covers the historical development and current issues in operations management, as well as operations strategy in manufacturing and services. It discusses functions of the operations management department like materials selection, methods, machines/equipment selection, estimating, loading/scheduling, routing, dispatching, expediting, inspection, and evaluation.
Operations management deals with managing the transformation of inputs into outputs through production systems. It involves decisions related to capacity, facilities, workflow, quality, and production systems. Operations management has shifted focus from cost reduction to value creation. Key decisions include selecting production systems, product and process design, technology selection, and resource allocation. Developing an effective operations strategy is important to support the organization's overall corporate strategy through competitive priorities like cost, quality, time, and flexibility.
This document provides an overview of production and operations management. It discusses the key components of a production system including inputs, conversion processes, and outputs. It also summarizes different types of production systems such as job shop, batch, and flow/mass production. The document outlines various strategies and factors that impact operations management, productivity, and competitiveness.
Production and Operations management IntroductionPritesh Kholkar
This document provides an introduction to production and operations management. It defines operations as a function that transforms inputs into more valuable outputs and operation management as systematically designing, operating, and improving systems that create products and services. Key topics covered include the factors affecting operations management today, reasons to study it, viewing operations as a system with inputs, transformation processes, and outputs. It also discusses strategic, tactical, and operational planning decisions and provides a historical summary of developments in operations management such as just-in-time and total quality control in the 1980s.
Dr. Abu Bakr Siddique's lecture outline covers visual management, quality, cost, delivery (QCD), and the just-in-time (JIT) system. The document discusses how visual management is used to detect abnormalities and make problems visible. It also explains how QCD factors are interrelated and how improving quality can reduce costs over time. Additionally, it describes how the JIT system addresses costs and delivery by producing only what is needed, and provides an example of how Aisin Seiki's plant implements JIT production.
Fundamentals of managing business operationDeepika ..
This document provides an overview of fundamentals of managing business operations. It discusses key concepts such as operations management, production management, value-added activities, productivity, competitive priorities of cost, quality, time and flexibility, and core competencies. Operations management involves transforming inputs into required outputs or services. Production management focuses on manufacturing products while operations management also applies to service organizations. The goal is to add value and create outputs worth more to consumers.
This document provides an introduction and agenda for topics related to operations management, competitive strategy, competitive advantage, and time-based competition. It includes sections on the history of operations management, differences between manufacturing and service operations, operations management decisions at the strategic and tactical levels, and techniques for reducing cycle time such as just-in-time and kanban systems. The document emphasizes the importance of operations strategy and positioning the production system to meet market requirements through factors like cost, quality, and flexibility.
Managing Operations, Quality and Productivity by nabeelNabeel Ehmed
The document introduces a student project team and discusses key concepts in operations management including operations, quality management, productivity, and technology. It defines operations management as the set of activities used to transform inputs into products/services. Ensuring efficient operations is important for competitiveness, performance, quality and productivity. Total quality management and just-in-time inventory systems are discussed as approaches to improve quality and productivity.
Lean manufacturing is a way to eliminate waste and improve efficiency. It focuses on minimizing muda, or waste, including excess inventory, unnecessary motion, defects, and overproduction. Lean originated from the Toyota Production System, which aimed to reduce costs through practices like just-in-time production and continuous improvement. The key aspects of lean are identifying value-added steps and removing waste, ensuring smooth workflow, using pull systems between processes, and engaging employees in continuous improvement.
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4. • To attract and retain customer
• Create sustainable profit over time.
• To solve customer’s problem
5. • For better management of a company
• Operations can add significant value to the
company by improving its competitiveness
and long term profitability.
Norman Gaither Greg Fraizer,Cengage
6. Organizational Model
Finance
Sales HRM
OM
QA
Marketing
MIS Accounting
Engineering
7. Out of the many functions in business
• Three primary functions are
• Finance (without finance ,financial failure will
result)
• Marketing( without marketing no product can
be sold)
• Operation ( without operation no product can
be produced.)
• How operation r important -------------------
8. The Subject of Production & Operation Management is
studied under different Headings-such as
• Production Planning and control,
• Production and Inventory control,
• Production and operations control
• and many more.
• What ever may be the title of the subject, the
contents of the subject are more or less one
and the same.
9. Before we discuss about production &
operation management, let us first
discuss about
• Product,
• Production
• Operation
• and management.
10. The set of interrelated management activities, which are
involved in manufacturing certain products, is called as
production management.
If the same concept is extended to services
management, then the corresponding set of
management activities is called as operations
Management.
11. • Earlier the focus was only for manufacturing
organization and it was termed as production
management.
• But later the same approaches and tools were
also applied to services organization, where the
focus was on Operations.
• But most business have service activity and
production activity so study of this discipline is
referred to as POM.
12. Career opportunity in OM
• Manufacturing manager
• Operation manager
• Plant manager
• Factory manager
• Production manager
• Production control manager
• Inventory manager
• Quality control manager
• V.P. manufacturing
• President operation etc.
13. Consider the following examples of important
operations decision
• Intel needs to construct a new multi billion
dollar fabrication plant to produce its next
generation of computer chip.
• Where and How should it build the
factory?
Norman Gaither Greg Fraizer,Cengage
14. • American airlines needs to allocate the
necessary resources to meet all of its customer
demand for air travel next month.
• How should it assign different size aircraft to
flight routes,piolts to air craft ,and flight attendant
to flight.
Norman Gaither Greg Fraizer,Cengage
15. • Hewlett Packard needs to increase output for
one model of printer ink cartridges on a
production line that is already running at full
capacity.
• What is the most cost effective way to redesign
the product line that is already running at its full
capacity.
Norman Gaither Greg Fraizer,Cengage
16. • These r small example ,the types of problem faced by
operation management.
• Poor operation decision can hurt company competitive
position and increases its cost.
• Good operation decision can improve the value of the
company by increasing profitability and growth.
Norman Gaither Greg Fraizer,Cengage
17. • Thus-------------------
• In the current business environment of
intense global competition ,
• firms have to offer their customer
• quality products
• that incorporates latest innovations ,
• reduce cycle time
• and customer service i.e. outstanding.
• All this at a value proposition that is more
attractive then that of their toughest
competitor.
18. This is possible only if
• A firm is alert and influence towards the
state of the art technology.
In order to obtain and sustain a
competitiveness in market firm has to rely
on the production and operation function
to be reliable and efficient.
19. Operation system( Function)
• Is that part of an organization which produces
the organization’s products and services.
In some organization Product is a Physical
goods (T.V.,Mobile) while in others it is a
service(education, health, financial).
(Everett. E. ADAM, Ronald J. Abert,
PhI)
20. • What do such diverse organization as
manufacturing companies ,financial
companies all have in common within their
operation.
Everett. E. ADAM, Ronald J. Abert
21. The common element is
Conversion Process
OR
Transformation Process
Everett. E. ADAM, Ronald J. Abert
22. Definition
• Production/Operation Management is the
management of an organization
productive resources or its production
system which converts inputs into the
organization’s products and services.
23. Definition
• Production and Operation management involves the
transformation of inputs into outputs , using physical
resources, so as to provide desired utility to the
customer while meeting the other organizational
objective .
K.Garg TMH
24. • Production system takes inputs –raw
material ,Humans ,machines, building
technology ,cash,information,and other
resources and convert them in outputs
products and services.
• This conversion process is the heart of
what is called operation management.
25. • On a farm the operation system is the
transformation that occurs when the farmer’s
input (land, equipment ,labor) are converted
into such outputs as corn, wheat or rice.
• The exact form of the conversion process
varies from industry to industry but this
phenomena exists in every industry.
( Everett. E. ADAM, Ronald J.
Abert, PhI)
26. • For all operation systems the general goal is to
create some kind of value addition , so that
outputs are worth more to consumers than
just the sum of individual inputs.
27. Operation manager’s job
• The operation manager’s job is to manage the
process of converting inputs into desired
outputs.
28. Activity in operation Management
• Organizing work
• Selecting process
• Arranging Layouts
• Facility location
• Designing Jobs
• Measurining Performance
• Controlling quality
• Scheduling work
• Maintaining inventory
• Planning production etc.
29. Skills
• Operation managers deal with people,
technology and deadlines.
• So these managers need good technical,
conceptual and behavioral skills.
30. Manufacturing Vs Service
operation
• Outputs are tangible • Services are generally
products or goods , manpower oriented
• Produced through with less use of
manufacturing machinery.
operations with the
help of certain
machinery and
equipments along with
the manpower .
31. Production Vs operation
Management
• Production management • Operation management
• According to nature of
• According to nature of output ,finished
output ,finished products products are tangible
are tangible ex car, bikes or intangible ex,
• According to restaurant,
Consumption of output transportation services
the products are • According to
consumed over a period Consumption of output
of time the services are
availed immediately.
32. • According to nature of • Operation management
work, production in case of services the
function requires less requirement of labor is
labor and more more and less
equipment. equipments.
• According to degree of • The customer
customer participation , frequently participates
• PM requires no in the conversion
participation of process in the case of
customer in service at least.
transformation process
33. Factors affecting OM today
• Global competition
• Quality, customer service and cost
challenges
• Rapid expansion of advance technology
• Scarcity of operation resources(capital)
• Social responsibility issue.
34. The Transformation Process
Quality of inputs Quality of outputs
monitored monitored
Random disturbances
INPUTS Transformation OUTPUTS
Process
Feedback Mechanisms
35. Inputs of an Operations System
• External Input: Legal/Political, technology,
Social/economic
• Market
– Competition, Customer Desires, Product
Information
• Primary Resources
– Materials, Personal , Capital and Capital goods,
Utilities
36. Outputs of an Operations System
• Direct
– Products
– Services
• Indirect
– Waste
– Pollution
37. The Transformation Process
For a Service Organization (An MBA
Institute) Random disturbances
• Strikes of students, Quality of
Quality of teachers or staff outputs
inputs • Undue interference of
Raw minds monitored
monitored the government in the
(students) working of institutions
Teachers
Class rooms Enlightened students with:
Transformation • Good communication skills
Computer lab Process • Pleasant personalities
Library • Leadership qualities
Projectors • Good analytical ability
(OHP, • Team spirit
LCD etc) • Decision making abilities
Administrative • Computer skills
Feedback Mechanisms
staff
• Success at placement interviews
• Grades obtained in examinations OUTPUTS
INPUTS
• Rising career graph of alumni in the industry
• Number of applications for admission
in the institute
• Ratings of surveys
38. The Transformation Process For a
Hybrid Service & Manufacturing
Organization
(A Restaurant)
Random disturbances
• High turnover of chefs, Quality of
Customers Quality of waiters, etc. outputs
Building inputs • Inflation monitored
Chef monitored • Government’s taxation
Vegetables policy
Furniture
Customers satisfied with:
Mutton, Transformation • Good preparation of the
chicken, Process food
pork, • Pleasant behavior and
Cooking oil,
etc. personality of the waiter
Spices, etc. • Genuine prices charged
Waiters
Manager
Feedback Mechanisms
• Rising Revenues
INPUTS OUTPUTS
• Repeat Customers
• Appreciation of customers
39. The Transformation Process For a
Purely Manufacturing Organization
(A
Refrigerator Manufacturer)
Random disturbances
• High turnover of workers Quality of
Machines & Quality of and managers outputs
Equipments inputs • Recession monitored
Building monitored • Government’s taxation
Components, policy
parts, sub- • Strikes instigated by trade
unions Customers satisfied with:
assemblies, etc.
Transformation • Good cooling performance
Workers • Less consumption with
Process
Office electricity
infrastructure • Good after-sales service
(computers, • New advanced features
furniture, etc.)
Packaging
material Feedback Mechanisms
Capital • Rising sales volume
Managers • Lesser customer complaints
• Positive response of customers in
INPUTS the feedback forms OUTPUTS
40. OBJECTIVE OF PRODUCTION MANAGEMENT
• The objective of Production Management is to
produce the desired product or specified
product by specified methods so that the
optimal utilization of available resources is
met with.
• Hence the production management is
responsible to produce the desired product,
which has marketability at the cheapest price
by proper planning, the manpower, material
and processes.
41. OBJECTIVE OF PRODUCTION
MANAGEMENT
• Production management must see that it will
deliver right goods of right quantity at right
place and at right price.
• When the above objective is achieved, we say
that we have effective Production
Management system.
42. Production Cycle
• The production cycle starts from Market
Research. Market research reveals consumer
preferences and needs.
• The marketing department will transfer this
information to the design department.
• The design department based on the
information received from marketing
department designs the product to fulfill
consumer needs and supplies design
specifications and drawings to production
department.
43. Production Cycle
• The production department verifies whether
the product can be manufactured with the
technology and skill available in the firm. If yes
it will give the acceptance. Otherwise the
Production Manager, Design engineer and
Marketing Manager, discuss together and
make alterations in the product,
44. Production & Operations Management (POM) Defined
Production & Operations Management is defined
as the design, operation, and improvement of the
transformation process, which converts the
various inputs into desired outputs of products
and services.
45. Product Design and development
Manufacturability Reverse Engineering
Research &
Standardization Development
Concepts
Product Life in Product Robust Design
Cycle Design
Concurrent
Engineering Modular Design
Computer Aided
Design (CAD)
Concepts in Product Design
46. Process Design
Types of Processes
Continuous Semi-continuous broken Project
Process (Repetitive/Assembly) Process
Process
Batch Process Job Shop
Types of Processes
48. Transforming resources
• Facilities: Machinery ,plant ,
• In case of barber-------
• Personal---what u produce will depend upon
kind of people more important in service
sector
49. Critical success factor
• In any operation the objective is to gain
competitive advantage over your rivals.
• It can be secured through several factors
these r called critical success factor.
50. • These factor determine whether
The operation of one organization is better
than other.
51. Seven critical success factor
• Price
• Quality
• Delivery
• Service
• Flexibility
• Innovations
• Cycle time
52. Price
• Offer the product Same or at a lesser price
than the competitor to compete in the
market
• For that we need cost down production
cost
• Variable cost consist of
• Material cost ,labor cost, utility cost
• Fixed cost---- economy of scale
53. Quality of product
• Quality of design
• Quality of conformance
• Quality of performance
• Customer first see the design
• Arbind hospital -1500 Rs
54. Services
• Pre sales service: Brochure, catalog,
publicity material
• During sales service: economy class
,business class, first class
• Waiting time, priority service time,
ambience,
• After sales service: Equally important as
before sales and during sales. Spark, beat
55. Flexibility
• Is the ability of operation to cope with the
demand from the customer .
• 5000
• 6000
• But p.u. cost should remain same or reduces.
56. Innovation
• Come out with new innovative product
• Innovative feature in existing feature
• Introduce innovative process
• Use innovative technology
• Motorola loose business because this and
recover with a new product called
Motorazer
• New waganor, I 10 ,
57. Cycle time
• Is the time taken for any operational Process.
• Time taken to pass through a check out
counter in retail store, metro station, airport.
• Airline turn around.
58. Experience curve
• The concept says that the cost per unit decreases
with the cumulative experience
gain by the firm.
Concept is based on----that
Market leader must have produced large number of
units over the period of time and as such required
vast experience.
59. And this experience comes handy in reducing the cost
per unit.
Such firm has lowest cost and highest profit
in industry.
Ex: British airways observe that with every doubling of
cumulative output cost per unit decrease by 20%.
60. 10
Cost 8
Per
unit
6.4
5.12
1 2 4 8
Cumulative production
61. Formula
• Cn = C1 n^ (-b)
• Cn = Cost of nth unit
• C1= Cost of 1st unit
• n = cumulative production
• b = a parameter that depends upon the
percentage of the experience curve.
• (C2/c1) = percentage of experience curve
62. Given
• 80 % experience curve
• C1 = Rs 10
• C2 = rs 8
• Then b = ?
66. Assignment
• A comp. is producing industrial boils for a particular
model. cost of producing the first boiler is rs 25 lakh.
The cost of producing the 500th boiler is rs 20 lakh .
Determine the parameter b of the experience curve .
• Determine how many boiler should produce so that
cost of boiler come down to rs 15 lakh.
67. Theory of learning
• It is recognized that repetition of the same operation
results in less time or effort expended on that
operation.
• Consistency in improvement has been found to exist in
the form of a constant percentage reduction in time
required over successively doubled quantities of units
produced
• The constant percentage by which the costs of doubled
quantities decrease is called the rate of learning.
68. Learning Curve Ratio
Learning Curve Ratio = Avg. Labour Cost Of First 2N Units
Avg. Labour Cost Of First N Units
Management Accounting
By Paresh Shah
Oxford University Press
69. • If the av. Labor Cost for the first 500 units of
the product is Rs 25 and the average labor
cost of first 1000 units is Rs. 20 the learning
ratio will be ?
•
70. • (20/25) * 100 = 80 %
• This means that every time output doubles,
the average cost declines to 80% of previous
amount.
71. Costs Reduction Using Learning
Curve
• Learning curve is used in managing Cost Reduction
Program that is the setting of realistic goals and the
monitoring of progress towards these goals.
• The cause of reduction in costs is learning on the part of
individuals and the entire organization in the process of
repetition.
• Learning impacts only recurring costs. Non-recurring costs,
such as the cost of acquiring tooling, are not affected
by learning
Management Accounting
By Paresh Shah
Oxford University Press